Barack Obama on Free Trade Democratic incumbent President; IL Senator (2004-2008)

Sub-sections under Free Trade:
• Free Trade Agreements
• Other issues under Free Trade

China is an adversary but also a potential partner

OBAMA: I think it will continue to be terrorist networks. We have to remain vigilant. But with respect to China, China's both an adversary but also a potential partner in the international community if it's following the rules. So my attitude coming into office was that we are going to insist that China plays by the same rules as everybody else. And I know Americans had seen jobs being shipped overseas, businesses and workers not getting a level playing field when it came to trade. And that's the reason why I set up a trade task force to go after cheaters when it came to international trade. We have brought more cases against China for violating trade rules than the previous administration had done in two terms. And we've won just about every case that we've filed. Just recently, steelworkers in Ohio & Pennsylvania, are in a position now to sell steel to China because we won that case.

Develop alternatives to importing rare earths from China

A: Rare earth elements and other critical minerals are used by American manufacturers to make high-tech products like the advanced batteries that power everything from hybrid cars to cell phones. My support for the development alternatives to rare earth materials is helping to ensure we have the materials necessary to propel our high-technology economy forward. Being able to manufacture competitive products in America is too important for us to stand by and do nothing. We've got to take control of our energy future, and we can't let the energy industry take root in other countries because they are allowed to break the rules. That's why we have joined with Japan and some of our European allies to bring a trade case against China for imposing restrictions on their exports of rare earth materials

Skeptical on whether China feels bound by global trade rules

There was also a certain Asian quality to the president's negotiations with China. "They push and push and push until you say no," Obama told those around him. "And then they stop pushing."

Trade Enforcement Unit: inspections for safe imports

Tonight, I'm announcing the creation of a Trade Enforcement Unit that will be charged with investigating unfair trade practices in countries like China. There will be more inspections to prevent counterfeit or unsafe goods from crossing our borders. No foreign company should have an advantage over American manufacturing when it comes to accessing finance or new markets like Russia. Our workers are the most productive on Earth, and if the playing field is level, I promise you--America will always win

FactCheck: Chinese tire import ban replaced by other imports

The White House based that claim on statistics that show the number of tire manufacturing jobs went from 50,800 in Sept. 2009, when a new tariff on Chinese tires was announced, to 51,900 in Oct. 2011. That's a gain of 1,100 jobs. But that says nothing about the cause.

Imports from China did drop sharply after the tariff took effect in 2009, beginning at a rate of 35%. However, Chinese tires were soon replaced by imports from Thailand, Indonesia, Mexico and elsewhere. "So far as saving American jobs, it just isn't working," says a representative of the Tire Industry Association. "And it really hurt a lot of people in the industry--smaller businesses that geared up to bring these tires in from China."

Double our exports by 2014; starting with South Korea

Before I took office, I made it clear that we would enforce our trade agreements, and that I would only sign deals that keep faith with American workers and promote American jobs. That's what we did with Korea, and that's what I intend to do as we pursue agreements with Panama and Colombia and continue our Asia Pacific and global trade talks.

FactCheck: Yes, exports up; but not enough to double by 2014

But that's still shy of the rate needed for doubling within five years, which would require an annual increase of nearly 15%, compounded. Furthermore, imports have also increased during the same period by a larger amount, resulting in a larger trade deficit.

Enforce trade being reciprocal; not just a one-way street

Pres. OBAMA: You're right, there are conflicts within the Democratic Party. I suspect some Republican constituencies may be pretty suspicious about new trade agreements, because the suspicion is somehow they're all one way. Part of what we've been trying to do is to make sure that we're getting the enforcement side, that if we've got a trade agreement with China or other countries, that they are abiding with it--they're not stealing our intellectual property. And my hope is, that trade is going to be reciprocal; that it's not just going to be a one-way street.

More exports means more jobs; double exports for 2M new jobs

We have to seek new markets aggressively, just as our competitors are. If America sits on the sidelines while other nations sign trade deals, we will lose the chance to create jobs on our shores. But realizing those benefits also means enforcing those agreements so our trading partners play by the rules. And that's why we'll continue to shape a Doha trade agreement that opens global markets, and why we will strengthen our trade relations in Asia and with key partners like South Korea and Panama and Colombia.

We export only 4,000 cars to Korea; that’s not free trade!

OBAMA: For far too long, certainly during the course of the Bush administration with the support of Sen. McCain, the attitude has been that any trade agreement is a good trade agreement. And NAFTA did not have enforceable labor agreements and environmental agreements.

And what I said was we should include those and make them enforceable. In the same way that we should enforce rules against China manipulating its currency to make our exports more expensive and their exports to us cheaper.

And when it comes to South Korea, we’ve got a trade agreement up right now, they are sending hundreds of thousands of South Korean cars into the US. That’s all good. We can only get 4,000 to 5,000 into South Korea. That is not free trade. We’ve got to have a president who is going to advocate on behalf of American businesses and American workers and I make no apology for that

Trade is here to stay; we have to compete

"The truth is, trade is here to stay. We live in a global economy. For America's future to be as bright as our past, we have to compete. We have to win.

"Not every job that has left is coming back. And not every job lost is due to trade--automation has made plants more efficient so they can make the same amount of steel with few workers. These are the realities.

"I also don't oppose all trade deals. I voted for two of them because they have the worker and environmental agreements I believe in. Some of you disagreed with me on this but I did what I thought was right."

Global trade is unsustainable if it favors only the few

Assist workers who lose globalization's race to the bottom

Obama adds, "But this is about more than displaced workers. Our failure to respond to globalization is causing a race to the bottom that means lower wages and stingier health and retiree benefits for all Americans. It's causing a squeeze on middle-class families who are working in this new economy. As one downstate (Illinois) worker told me during a recent visit, 'It doesn't do me much good if I'm saving a dollar on a T-shirt in Wal-Mart, but don't have a job.'"

Impossible to turn back globalization; we’d be worse off

There are some who believe that we must try to turn back the clock on this new world; that the only chance to maintain our living standards is to build a fortress around America; to stop trading with other countries, shut down immigration, and rely on old industries. I disagree. Not only is it impossible to turn back the tide of globalization, but efforts to do so can make us worse off.

Rather than fear the future, we must embrace it. I have no doubt that America can compete--and succeed--in the 21st century. And I know as well that more than anything else, success will depend not on our government, but on the dynamism, determination, and innovation of the American people.

Don’t let trade policy be dictated by special interests

We cannot stand by while countries manipulate currencies to promote exports, creating huge imbalances in the global economy. We cannot let foreign regulatory policies exclude American products. We cannot let enforcement of existing trade agreements take a backseat to the negotiation of new ones. Put simply, we need tougher negotiators on our side of the table--to strike bargains that are good not just for Wall Street, but also for Main Street. And when I am President, that’s what we will do.

Strong labor, safety, and environmental standards on trade

More Transition Assistance for displaced workers

• Improve Transition Assistance:To help all workers adapt to a rapidly changing economy, Obama would update the existing system of Trade Adjustment Assistance by extending it to service industries, creating flexible education accounts to help workers retrain, and providing retraining assistance for workers in sectors of the economy vulnerable to dislocation before they lose their jobs.
• Fight for Fair Trade: Obama will pressure the World Trade Organization to enforce trade agreements and stop countries from continuing unfair government subsidies to foreign exporters and nontariff barriers on U.S. exports.
• Amend the North American Free Trade Agreement: Obama believes that NAFTA and its potential were oversold to the American people. Obama will work with the leaders of Canada and Mexico to fix NAFTA so that it works for American workers.

Enforce environmental & labor provisions in trade agreements

OBAMA: Well, in a year’s time, it’ll be me who’s enforcing them. We’re going to make sure that the right thing is being done. It is absolutely critical for us to understand that NAFTA was an enormous problem. The permanent trade relations with China, without some of the enforcement mechanisms that were in there, that you voted for, was also a significant problem. And we’ve got to all move forward as Democrats to make sure that we’ve got trade deals that work for working people and not just for corporate profits.

Enforce existing safety laws against Chinese products

A: We have laws on the books now that aren’t being enforced. This is what I mean in terms of us negotiating more effectively with them. Part of the problem is, is that the relationship has shifted over time. I would say toys cannot come in. We will have our own safety inspectors on the ground for food.

Congress subsidizes megafarms & hurts family farmers

A: Congress subsidizes these big megafarms and hurts family farmers oftentimes in the process. And we’ve got to cap those subsidies so that we don’t have continued concentration of agriculture in the hands of a few large agribusiness interests. But, on the trade issue generally, we’re not going to suddenly cordon off America from the world. Globalization is here, and I don’t think Americans are afraid to compete. And we have the goods and the services and the skills and the innovation to compete anywhere in the world. But what we’ve got to make absolutely certain of is that, in that competition, we are hard bargainers. You know, I’m always struck by the Bush administration touting that this is the MBA president and they’re such great businessmen, and they get taken to the cleaners in a lot of these trade agreements. And we’ve got to have somebody who’s negotiating on behalf of workers and family farmers

People don’t want cheaper T-shirts if it costs their job

A: Look, people don’t want a cheaper T-shirt if they’re losing a job in the process. They would rather have the job and pay a little bit more for a T-shirt. And I think that’s something that all Americans could agree to.

But this raises a larger point, which is: globalization is here. And we should be trading around the world. We don’t want to just be standing still while the rest of the world is out there taking the steps that it needs to in order to expand trade.

Congress has a responsibility because we’ve got right now provisions in our tax code that reward companies that are moving jobs overseas instead of companies that are investing right here in the US. And that is a reflection of the degree to which special interests have been shaping our trade policy. That’s something that I’ll end.

Reinvest in communities that are burdened by globalization

A: I moved to Chicago to work with churches that were dealing with the devastation of steel plants that had closed all throughout the region. Tens of thousands of people had been laid off. There was never a federal effort to come in after those closings and to figure out how can we retrain workers for the jobs of the future, how can we invest and make sure capital is available to create new businesses in those communities. And so not only do we have to deal with our trade agreements, not only do we have to eliminate tax breaks for companies that are moving overseas, not only do we have to work on our education system, but we also have to have an intentional strategy on the part of the federal government to make sure that we are reinvesting in those communities that are being burdened by globalization and not benefiting from it.

Fair trade should have tangible benefits for US

Trade agreements mean we sell "Made in America" to millions

I've met workers in Detroit and Toledo who feared they'd never build another American car. And today, they can't build them fast enough, because we reinvented a dying auto industry that's back on top of the world.

I've worked with business leaders who are bringing jobs back to America, not because our workers make less pay, but because we make better products. Because we work harder and smarter than anyone else.

I've signed trade agreements that are helping our companies sell more goods to millions of new customers, goods that are stamped with three proud words: Made in America.

After a decade of decline, this country created over half a million manufacturing jobs in the last two and a half years.

Double US exports via deals with Panama, Colombia, & S.Korea

I will go anywhere in the world to open new markets for American products.

China trade deal does too little on fairness & compliance

That's why I believe the Permanent Normalized Trade agreement with China didn't do enough to ensure fairness and compliance.

NAFTA protects corporate profits; should protect labor

"It's a Washington where George Bush hands out billions in tax cuts year after year to the biggest corporations and the wealthiest few who don't need them and don't ask for them.

"A Washington where decades of trade deals like NAFTA and China have been signed with plenty of protections for corporations and their profits, but none of our environment or our workers who've seen factories shut their doors and millions of jobs disappear, workers whose right to organize and unionize has been under assault for the last eight years.

"And it's a Washington that has thrown open its doors to lobbyists an special interests who've riddled our tax code with loopholes that let corporations avoid paying their taxes while you're paying more."

Supports trade & globalization but opposes CAFTA job loss

These strong words in support of international trade and globalization are from an OpEd Obama published in the Chicago Tribune on June 30, 2005, entitled, "Why I Oppose CAFTA." But Obama also believes that trade agreements must address issues of fairness, such as labor, environmental, and consumer safety.

The trade Obama is most concerned with is that which costs jobs in America and depresses wages here. Primarily, this is trade with developing countries who have a much lower wage structure due to their much lower cost of living.

Peru trade OK because it includes labor & enviro protections

Obama understands that we cannot allow trade with countries like China if they are not going to respect the rights of workers and consumers.

NAFTA needs to be amended

Stand firm against CAFTA for labor & environmental standards

Amend NAFTA to add labor agreements

A: I would immediately call the president of Mexico, the president of Canada to try to amend NAFTA because I think that we can get labor agreements in that agreement right now. And it should reflect the basic principle that our trade agreements should not just be good for Wall Street, it should also be good for Main Street.

Insist on labor and human rights standards for China trade

Voted YES on free trade agreement with Oman.

Opponents of the bill say to vote NAY because:
• International trade can confer tremendous benefits on all of its participants. Unfortunately, the Oman Free Trade Agreement fails to live up to that potential.
• In 2001, the US entered into a similar trade agreement with the country of Jordan. The agreement was heralded for its progressive labor standards. However, we have recently seen in Jordan instances of foreign workers forced into slave labor, stripped of their passports, denied their wages, and compelled to work for days without rest.
• These incidents have been occurring in Jordan because Jordanian labor laws preclude protections for foreign workers. My fear in Oman is that they have far weaker labor standards, and that would lend itself to even worse conditions than in Jordan.
• When our trade partners are held to different, less stringent standards, no one is better off. When Omani firms can employ workers in substandard conditions, the Omani workers and American workers both lose. The playing field is not level.

Proponents of the bill say to vote YEA because:
• The Oman Free Trade Agreement sends a very important message that the US strongly supports the economic development of moderate Middle Eastern nations. This is a vital message in the global war on terrorism.
• Since the end of WWII, the US has accepted nonreciprocal trade concessions in order to further important Cold War and post-Cold War foreign policy objectives. Examples include offering Japan and Europe nonreciprocal access to American markets during the 1950s in order to strengthen the economies of our allies and prevent the spread of communism.
• Oman is quickly running out of oil and, as a result, has launched a series of measures to reform its economy. This free-trade agreement immediately removes Oman's uniform 5% tariff on US goods.

Voted NO on implementing CAFTA for Central America free-trade.

• Progressively eliminate customs duties on all originating goods traded among the participating nations
• Preserve US duties on imports of sugar goods over a certain quota
• Remove duties on textile and apparel goods traded among participating nations
• Prohibit export subsidies for agricultural goods traded among participating nations
• Provide for cooperation among participating nations on customs laws and import licensing procedures
• Recommend that each participating nation uphold the Fundamental Principles and Rights at Work
• Urge each participating nation to obey various international agreements regarding intellectual property rights

Extend trade restrictions on Burma to promote democracy.

A joint resolution approving the renewal of import restrictions contained in the Burmese Freedom and Democracy Act of 2003. The original act sanctioned the ruling military junta, and recognized the National League of Democracy as the legitimate representative of the Burmese people.

Legislative Outcome: Related bills: H.J.RES.44, H.J.RES.93, S.J.RES.41; became Public Law 110-52.